14-8-7. Determination of existence of partnership.

In determining whether a partnership exists, the following rules shall apply:

Except as provided by Code Section 14-8-16 persons who are not partners as to each other are not partners as to third persons;#

Joint tenancy, tenancy in common, tenancy by the entireties, joint property, common property, or part ownership does not of itself establish a partnership, whether such co-owners do or do not share any profits made by the use of the property;#

The sharing of gross returns does not of itself establish a partnership, whether or not the persons sharing them have a joint or common right or interest in any property from which the returns are derived;#

The receipt by a person of a share of the profits of a business is prima-facie evidence that he is a partner in the business; provided, however, that no such inference shall be drawn if profits were received in payment of the following, even though the amount of payment varies with the profits of the business:#

1. (A)

   A debt, whether by installments or otherwise;#

2. (B)

   Wages, salary, or other compensation to an employee or independent contractor;#

3. (C)

   Rent to a landlord;#

4. (D)

   An annuity or other payment to a surviving spouse or representative of a deceased partner;#

5. (E)

   Interest or other payment or charge on a loan;#

6. (F)

   Consideration for the sale of good will of a business or other property, whether by installments or otherwise.#